Question 1

Which of the following best describes the term 'Big Data' in a business context?

Accepted Answer

The challenges of collecting, managing, storing, and curating vast amounts of information.

Question 2

A company wants to analyze customer satisfaction using a survey with responses: 'Very Unsatisfied', 'Unsatisfied', 'Satisfied', 'Very Satisfied'. What type of variable is this?

Accepted Answer

Ordinal categorical variable

Question 3

Which step in the 7-step Plan, Do, and Report strategy involves checking conditions and assumptions for modeling?

Accepted Answer

Step 6: Model (if appropriate)

Question 4

In a data table, the rows represent ________ and the columns represent ________.

Accepted Answer

Cases; variables

Question 5

A variable 'Age' is recorded as 'child', 'teen', 'adult', or 'senior' for an internet bookstore. How is 'Age' being used?

Accepted Answer

As a categorical variable

Question 6

Which of the following is NOT a characteristic of identifier variables?

Accepted Answer

They are used for analysis to find trends.

Question 7

A business analyst is examining monthly sales revenue for each store location over the past year. What type of data is this?

Accepted Answer

Time series data

Question 8

Which of the following best illustrates a quantitative variable?

Accepted Answer

Price of a product measured in dollars

Question 9

Why is it important to know the 'Who, What, and Why' before analyzing data?

Accepted Answer

To have enough context to make meaningful decisions and interpretations.

Question 10

A survey is conducted only among visitors to a fan website, but results are reported as representing all students. What is the main issue with this approach?

Accepted Answer

The data is not representative of the larger group.

Question 11

Which of the following is an example of a nominal variable?

Accepted Answer

Type of product category (e.g., electronics, clothing, groceries)

Question 12

A company collects data on 'Pre Spending' and 'Post Spending' for each customer, measured in dollars. What type of variables are these?

Accepted Answer

Quantitative variables

Question 13

Which of the following best describes business analytics?

Accepted Answer

The use of data and statistical analysis to inform business decisions.

Question 14

If a variable is recorded as a number but does not have units or quantitative meaning, how should it be classified?

Accepted Answer

Categorical variable

Question 15

Which of the following is a key reason to be skeptical when analyzing data?

Accepted Answer

Context can be slanted to influence interpretation.

Question 16

A business wants to predict future sales based on past transaction data. What is this type of analysis called?

Accepted Answer

Predictive analytics

Question 17

Which of the following is NOT a step in the Plan, Do, and Report strategy?

Accepted Answer

Analyze only identifier variables

Question 18

A company collects data on sales revenue, number of customers, and expenses for each store at one point in time. What type of data is this?

Accepted Answer

Cross-sectional data

Question 19

Which of the following best describes an ordinal variable?

Accepted Answer

A variable whose values can be ordered or ranked.

Question 20

A business analyst is tasked with combining data from multiple sources and avoiding duplication. Which variable is most useful for this purpose?

Accepted Answer

Identifier variable

Chapter 1: Data and Decisions – Business Statistics Study Notes

Study Guide - Practice Questions

Study Guide - Flashcards